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Omnichannel Customer Service in 2024: Benefits & Challenges

In today’s complex customer journey, customers interact with businesses through multiple channels while their expectations for a seamless and personalized experience are increasing (see Figure 1). 

However, providing consistent, tailored support across various platforms presents a significant challenge for businesses. Traditional customer service models rely on the customer service agent and provide limited self-service capabilities. Therefore, they struggle to keep up with the rapid digital transformation and the growing demands of modern consumers.

Figure 1. Customer expectations in 2020 vs 2022

Source: Salesforce Research

Omnichannel customer service emerges as the answer in this complex landscape. By integrating different customer touchpoints and leveraging data-driven insights, companies can offer personalized, consistent experiences that delight customers and foster loyalty. This article will explore omnichannel customer service with its benefits, challenges, and best practices for successful implementation.

What is omnichannel customer service?

Omnichannel customer service is a customer support approach that provides a seamless and consistent experience across multiple channels and touchpoints throughout the entire customer journey. It aims to integrate multiple communication channels to deliver a unified customer experience.

The communication channels can be utilized by using contact center solutions with artificial intelligence (AI) tools that offer:

  • Phone calls
  • Email
  • Live chat
  • Social media
  • Messaging apps
  • Self service portals
  • Video chat
  • In-person support
  • Text messaging (SMS)

According to a survey, 74% of customers employ various channels to initiate and finalize a transaction.1 The omnichannel customer support approach enables customers to switch between channels effortlessly while maintaining the context of their interactions.

Sponsored:

Salesforce is the CRM market leader and Salesforce Service Cloud platform designed specifically for customer service and support with AI-driven assistants. Service Cloud enables workflow automation for many branches of the customer service by streamlining customer support processes, managing cases, and providing an exceptional omnichannel customer experience by centralizing customer interactions and data in one unified platform.

Why is there a need for omnichannel customer service?

Customer service has evolved to an omnichannel approach with the rise of emerging tools such as social customer service software. Digital-hungry companies must understand how to orchestrate a 360-degree social customer service strategy in today’s ever-changing environment.

Changing customer expectations 

Today’s customers expect quick, personalized, and efficient support across various channels. They want the flexibility to choose their preferred communication method and receive consistent service, regardless of the channel they use. The fact that 61% of customers are willing to walk away after just one bad customer service experience shows that keeping up with customer expectations should be the number one priority for businesses.2

Increased use of digital channels 

The rise of the internet and smartphones led to the widespread adoption of digital communication channels, such as social media, live chat, and messaging apps. Businesses may to adapt to these new channels to cater to their customers’ changing preferences.

Need for seamless experiences 

Customers often switch between channels during their interactions with a brand, expecting their experience to be uninterrupted. Omnichannel customer service addresses this need by providing a seamless and consistent experience across all touchpoints.

What are the key components of omnichannel customer service that can be challenging for successful implementation?

1- Channel integration

Integrating various communication channels, such as email, social media, and in-person interactions, is crucial for a smooth customer experience. Customers should be able to switch between channels effortlessly, without losing the context of their interactions.

2- Consistency

Ensuring consistent messaging, branding, and service quality across all channels is vital. 76% of customers anticipate consistent engagements throughout various departments.3 So, customers should receive the same level of support and information, regardless of the channel they use. Businesses must find a balance between channel-specific requirements and overall consistency.

3- Cross-functional collaboration

Effective multichannel customer service requires collaboration between different teams and departments within the organization. Aligning goals, processes, and strategies across the company ensures a cohesive customer experience. Despite this, 46% of businesses have difficulty in integrating customer service with other business functions and channels (see Figure 2). 

Figure 2. The success of US businesses in meeting the customer service standards

Source: Zendesk CX Trends 2022

4- Employee training and empowerment

Equipping customer service agents with the necessary skills and knowledge to handle customer interactions across multiple channels is crucial. Provide ongoing training and empower customer service reps with the tools and information they need to deliver exceptional service.

5- Data and analytics

Collecting and analyzing customer data from different channels can help businesses understand customer behavior, preferences, and pain points. This information can be used to optimize customer interactions and improve the overall customer experience. For this, businesses need to have robust data management practices and tools in place to ensure data accuracy and consistency.

6- Data privacy and security

Protecting customer data is crucial, especially with the increasing number of channels involved in omnichannel customer service. Businesses must comply with data protection regulations and implement strong security measures to safeguard sensitive customer information.

7- Personalization

Personalized customer experiences can improve satisfaction and loyalty. Using data from various channels to tailor your customer service to individual needs and preferences is important. You can leverage conversational AI technology to enable personalized support to customers while automating communication processes.

For more, check our article on the use of conversational AI for customer service.

8- Seamless real-time technological integrations

Integrating multiple channels, systems, and tools can be complex, time-consuming, and costly. Businesses need to ensure that different platforms and tools work seamlessly together to provide a consistent and cohesive customer experience.

What are the benefits of an omnichannel customer service strategy?

1- Improved customer satisfaction

By offering seamless and consistent omnichannel support across multiple channels, businesses can better meet customer needs and preferences, leading to increased satisfaction and a more positive customer experience.

2- Increased customer loyalty and retention

A well-executed omnichannel customer service strategy can foster long-term relationships with customers, as they are more likely to remain loyal to brands that provide excellent and convenient support.

3- Greater efficiency and cost savings

Integrating and streamlining customer support channels can help businesses optimize their operations, reduce response times, and allocate resources more effectively, leading to cost savings and increased efficiency.

4- Enhanced brand reputation

Providing exceptional omnichannel customer service can boost a company’s reputation and help them stand out from the competition.

5- Personalized customer experiences

Omnichannel customer service allows businesses to gather data from various channels and use it to tailor their support to individual customer needs and preferences, creating personalized experiences that can improve satisfaction and loyalty. 

According to McKinsey research, omnichannel personalization increases many business benchmarks ranging from revenue to customer acquisition (see Figure 3).

Figure 3. The benefits of omnichannel personalization for a company

Source: McKinsey Omnichannel Personalization Research

6- Better customer insights

Collecting and analyzing data from multiple channels can help businesses better understand their customers’ needs, preferences, and behavior, enabling them to make informed decisions about their products, services, and support strategies.

What should you do to overcome these challenges?

Leveraging customer service software can be an effective solution to overcome many of the challenges associated with implementing an omnichannel customer service strategy. 

Customer service software solutions offer omnichannel customer service. They help streamline and automate various aspects of customer service, enabling businesses to efficiently manage and integrate multiple channels. Especially with the integration of AI solutions, such as conversational AI tools and GPT technology, customer service software tools enable automation with intelligence.

By using customer service software, businesses can: 

  • Centralize customer data from different channels, allowing for easier data management, analysis, and personalization.
  • Maintain consistency in messaging, branding, and service quality across channels. 
  • Facilitate cross-functional collaboration with a unified platform for teams to work together and share information. 
  • Track their success and optimize their omnichannel customer service strategies.

To find the right tool for your business among many alternatives, check our data driven and in-depth customer service software selection guide.

Further reading

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Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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